Nrs: Chapter 645E - Mortgage Bankers

Link to law: https://www.leg.state.nv.us/NRS/NRS-645E.html
Published: 2015

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[Rev. 11/21/2013 12:58:33

PM--2013]



CHAPTER 645E - MORTGAGE BANKERS

GENERAL PROVISIONS

NRS 645E.010        Definitions.

NRS 645E.020        “Applicant”

defined.

NRS 645E.030        “Commercial

mortgage loan” defined.

NRS 645E.040        “Commercial

property” defined.

NRS 645E.050        “Commissioner”

defined.

NRS 645E.060        “Depository

financial institution” defined.

NRS 645E.070        “Division”

defined.

NRS 645E.080        “Institutional

investor” defined.

NRS 645E.090        “Licensee”

defined.

NRS 645E.100        “Mortgage

banker” defined.

NRS 645E.105        “Nationwide

Mortgage Licensing System and Registry” and “Registry” defined.

NRS 645E.130        Statutory

and common-law rights, remedies and punishments unaffected; limitation on

actions against State and its officers and employees.

EXEMPTIONS

NRS 645E.150        Exemptions

for certain persons and entities.

NRS 645E.160        Certificate

of exemption required for certain persons and entities; application; fee;

automatic expiration; prohibitions; administrative fines; certificate of

exemption for purposes of complying with requirements of Registry;

applicability of chapter to persons filing application for purpose of complying

with requirements of Registry.

NRS 645E.170        Exemptions

for certain loans; application; grounds for granting exemption; powers and

duties of Commissioner.

LICENSING OF MORTGAGE BANKERS

NRS 645E.200        Application

for license; application for branch offices; requirements for issuance of

license; grounds for denial of license to partnership, corporation or

unincorporated association; license for office outside Nevada which conducts

business in Nevada.

NRS 645E.210        Payment

of child support: Submission of certain information by applicant; grounds for

denial of license; duty of Commissioner. [Effective until the date of the

repeal of 42 U.S.C. § 666, the federal law requiring each state to establish

procedures for withholding, suspending and restricting the professional,

occupational and recreational licenses for child support arrearages and for

noncompliance with certain processes relating to paternity or child support

proceedings.]

NRS 645E.210        Payment

of child support: Submission of certain information by applicant; grounds for

denial of license; duty of Commissioner. [Effective on the date of the repeal

of 42 U.S.C. § 666, the federal law requiring each state to establish

procedures for withholding, suspending and restricting the professional,

occupational and recreational licenses for child support arrearages and for

noncompliance with certain processes relating to paternity or child support

proceedings and expires by limitation 2 years after that date.]

NRS 645E.220        Posting

of license; restrictions on transfer or assignment of license.

NRS 645E.230        Activities

authorized by license; dual licensure as mortgage banker and mortgage broker.

EXPIRATION AND RENEWAL OF MORTGAGE BANKER’S LICENSE OR

CERTIFICATE OF EXEMPTION; FEES

NRS 645E.280        Annual

expiration of license or certificate of exemption; procedure for renewal; fees.

LICENSING AS AND SUPERVISION OF MORTGAGE AGENTS

NRS 645E.290        Licensure

as mortgage agent required for certain persons who engage in activities as loan

originator or who supervise mortgage agents who engage in such activities.

NRS 645E.291        Supervision

of mortgage agents by mortgage banker; requirements; regulations.

SUPERVISION BY COMMISSIONER

General Provisions

NRS 645E.300        Duties

of Commissioner: Regulations; investigations; annual examinations; periodic and

special audits; hearings; related fees; biennial examinations.

NRS 645E.310        Subpoenas;

oaths; examination of witnesses; penalty; assessment of costs.

NRS 645E.315        Written

notice of address change; approval by Commissioner; administrative fine.

NRS 645E.320        Payment

of statutory assessment by mortgage banker; duty of mortgage banker to

cooperate fully with audits and examinations.

 

Records and Financial Statements

NRS 645E.350        Records

relating to mortgage transactions, financial condition and trust accounts;

monthly report to Commissioner; accounting procedures for trust accounts;

regulations; records of licensee who operates outside Nevada; mortgage bankers

required to submit reports to Registry.

NRS 645E.360        Annual

financial statement; audit of trust accounts; Commissioner authorized to direct

submission of financial statement; regulations.

NRS 645E.370        Records

of Commissioner: General provisions governing public inspection and

confidentiality.

NRS 645E.375        Records

of Commissioner: Certain records relating to investigation deemed confidential;

certain records relating to disciplinary action deemed public records;

disclosure by Commissioner.

 

Transfer of Stock

NRS 645E.390        Notification

of certain transfers required; application to Commissioner for approval of

change of control; investigation; waiver.

ESCROW AND TRUST ACCOUNTS

NRS 645E.420        Escrow

account required for fee, salary, deposit or money paid in advance; release

from escrow; exceptions; refunds; penalty.

NRS 645E.430        Trust

account required for money deposited to pay taxes or insurance premiums;

fiduciary duty of mortgage banker; accounting to debtor and Commissioner;

additional duties and prohibitions.

NRS 645E.440        Limitations

on execution or attachment of money in trust account; commingling of money

prohibited.

LOAN PAYMENTS

NRS 645E.470        Limitations

on charging late fee, additional amount of interest or other penalty.

INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIAL

ACTION

NRS 645E.620        Authority

of Commissioner when violation is suspected; referral of violations to district

attorney for criminal prosecution; civil action for injunctive relief.

NRS 645E.630        Authority

of Commissioner when unsafe condition or practice is suspected; seizure of

property and assets of mortgage banker; duties of Attorney General.

NRS 645E.640        Persons

entitled to correct unsafe conditions and practices; effect of failure to correct;

receivership and liquidation of assets.

DISCIPLINARY ACTION

NRS 645E.670        Authorized

disciplinary action; grounds for disciplinary action; orders imposing

discipline deemed public records.

NRS 645E.680        Suspension

of license for failure to pay child support or comply with certain subpoenas or

warrants; reinstatement of license. [Effective until 2 years after the date of the

repeal of 42 U.S.C. § 666, the federal law requiring each state to establish

procedures for withholding, suspending and restricting the professional,

occupational and recreational licenses for child support arrearages and for

noncompliance with certain processes relating to paternity or child support

proceedings.]

NRS 645E.690        Duty

of Commissioner to take disciplinary action for certain violations.

NRS 645E.700        Disciplinary

proceedings, fines and penalties not affected by expiration, revocation or voluntary

surrender of license.

NRS 645E.710        Act

or omission of partner, officer or director deemed act or omission of

partnership, corporation or unincorporated association.

HEARINGS; APPEALS

NRS 645E.750        Duty

of Commissioner to provide written notice of disciplinary action or denial of

license; right to administrative hearing; entry of final order; appeals.

MISCELLANEOUS PROVISIONS

NRS 645E.800        Exercise

of jurisdiction over party to civil action; service of summons to confer

jurisdiction.

UNLAWFUL ACTS; PENALTIES

NRS 645E.900        Unlawful

to conduct business of mortgage banker without being licensed or exempt from

licensing.

NRS 645E.910        Unlawful

for foreign corporation, association or business trust to conduct business of

mortgage banker without meeting certain requirements.

NRS 645E.920        Contracts

for mortgage transaction voidable for certain violations.

NRS 645E.930        Civil

action authorized for certain violations.

NRS 645E.950        Penalties

for general violations.

NRS 645E.955        Restitution.

NRS 645E.960        Penalties

for violations relating to escrow or trust accounts.

_________

 

GENERAL PROVISIONS

      NRS 645E.010  Definitions.  As

used in this chapter, unless the context otherwise requires, the words and

terms defined in NRS 645E.020 to 645E.105, inclusive, have the meanings ascribed to

them in those sections.

      (Added to NRS by 1999, 3744; A 2011, 3625)

      NRS 645E.020  “Applicant” defined.  “Applicant”

means a person who applies for licensure as a mortgage banker pursuant to this

chapter.

      (Added to NRS by 1999, 3744; A 2003, 3558)

      NRS 645E.030  “Commercial mortgage loan” defined.  “Commercial

mortgage loan” means a loan that:

      1.  Directly or indirectly, is secured by a

lien on commercial property; and

      2.  Is created with the consent of the

owner of the commercial property.

      (Added to NRS by 1999, 3744)

      NRS 645E.040  “Commercial property” defined.  “Commercial

property” means any real property which is located in this state and which is

neither used as a dwelling nor upon which a dwelling is constructed or intended

to be constructed. For the purposes of this section, “dwelling” has the meaning

ascribed to it in section 103(v) of the federal Truth in Lending Act, 15 U.S.C.

§ 1602(v).

      (Added to NRS by 1999, 3744; A 2011, 3625)

      NRS 645E.050  “Commissioner” defined.  “Commissioner”

means the Commissioner of Mortgage Lending.

      (Added to NRS by 1999, 3744; A 2003, 3558)

      NRS 645E.060  “Depository financial institution” defined.  “Depository financial institution” means a

bank, savings and loan association, thrift company or credit union.

      (Added to NRS by 1999, 3744)

      NRS 645E.070  “Division” defined.  “Division”

means the Division of Mortgage Lending of the Department of Business and

Industry.

      (Added to NRS by 1999, 3744; A 2003, 3558)

      NRS 645E.080  “Institutional investor” defined.  “Institutional

investor” means a person who, in the regular course of business, makes

commercial mortgage loans of more than $250,000 that are funded exclusively

from one or more of the following sources:

      1.  The person’s cash, corporate capital or

warehouse credit lines at a depository financial institution or other sources

that are liability items on the person’s financial statements.

      2.  Correspondent contracts between the

person and another institutional investor or between the person and a

depository financial institution, trust company, profit-sharing or pension

trust, installment lender or insurance company.

      3.  An affiliate’s cash, corporate capital

or warehouse credit lines at a depository financial institution or other

sources that are liability items on the affiliate’s financial statements for

which the affiliate’s assets are pledged. As used in this subsection,

“affiliate” means another person who, directly or indirectly through one or

more intermediaries, controls, is controlled by or is under common control with

the person who is the institutional investor.

      (Added to NRS by 1999, 3745)

      NRS 645E.090  “Licensee” defined.  “Licensee”

means a person who is licensed as a mortgage banker pursuant to this chapter.

      (Added to NRS by 1999, 3745; A 2003, 3558)

      NRS 645E.100  “Mortgage banker” defined.

      1.  “Mortgage banker” means any of the

following:

      (a) A person who, directly or indirectly:

             (1) Holds himself or herself out as being

able to:

                   (I) Buy or sell notes secured by

liens on real property; or

                   (II) Make loans secured by liens on

real property using his or her own money; and

             (2) Does not engage in any other act or

transaction described in the definition of “mortgage broker,” as set forth in NRS 645B.0127, unless the person is

also licensed as a mortgage broker pursuant to chapter

645B of NRS.

      (b) A person who, directly or indirectly:

             (1) Negotiates, originates or makes or

offers to negotiate, originate or make commercial mortgage loans as an agent

for or on behalf of an institutional investor; and

             (2) Does not engage in any other act or

transaction described in the definition of “mortgage broker,” as set forth in NRS 645B.0127, unless the person is

also licensed as a mortgage broker pursuant to chapter

645B of NRS.

      2.  For the purposes of this section, a

person does not make a loan secured by a lien on real property using his or her

own money if any portion of the money that is used to make the loan is provided

by another person who acquires ownership of or a beneficial interest in the

loan.

      (Added to NRS by 1999, 3745; A 2003, 3558)

      NRS 645E.105  “Nationwide Mortgage Licensing System and Registry” and

“Registry” defined.  “Nationwide

Mortgage Licensing System and Registry” or “Registry” has the meaning ascribed

to it in NRS 645B.0128.

      (Added to NRS by 2011, 3625)

      NRS 645E.130  Statutory and common-law rights, remedies and punishments

unaffected; limitation on actions against State and its officers and employees.  The provisions of this chapter do not:

      1.  Limit any statutory or common-law right

of a person to bring a civil action against a mortgage banker for any act or

omission involved in the transaction of business by or on behalf of the

mortgage banker;

      2.  Limit the right of the State to punish

a person for the violation of any law, ordinance or regulation; or

      3.  Establish a basis for a person to bring

a civil action against the State or its officers or employees for any act or

omission in carrying out the provisions of this chapter, including, without

limitation, any act or omission relating to the disclosure of information or

the failure to disclose information pursuant to the provisions of this chapter.

      (Added to NRS by 1999, 3745; A 2003, 3558)

EXEMPTIONS

      NRS 645E.150  Exemptions for certain persons and entities.  Except as otherwise provided in NRS 645E.160, the Secure and Fair Enforcement for

Mortgage Licensing Act of 2008, 12 U.S.C. §§ 5101 et seq., and any regulations

adopted pursuant thereto or other applicable law, the provisions of this

chapter do not apply to:

      1.  Any person doing business under the

laws of this State, any other state or the United States relating to banks,

savings banks, trust companies, savings and loan associations, industrial loan

companies, credit unions, thrift companies or insurance companies, including,

without limitation, a subsidiary or a holding company of such a bank, company,

association or union.

      2.  A real estate investment trust, as

defined in 26 U.S.C. § 856, unless the business conducted in this State is not

subject to supervision by the regulatory authority of the other jurisdiction,

in which case licensing pursuant to this chapter is required.

      3.  An employee benefit plan, as defined in

29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the

plan’s trustee.

      4.  An attorney at law rendering services

in the performance of his or her duties as an attorney at law.

      5.  A real estate broker rendering services

in the performance of his or her duties as a real estate broker.

      6.  Any person doing any act under an order

of any court.

      7.  Any one natural person, or husband and

wife, who provides money for investment in commercial loans secured by a lien

on real property, on his or her own account, unless such a person makes a loan

secured by a lien on real property using his or her own money and assigns all

or a part of his or her interest in the loan to another person, other than his

or her spouse or child, within 3 years after the date on which the loan is made

or the deed of trust is recorded, whichever occurs later.

      8.  A natural person who only offers or

negotiates terms of a residential mortgage loan:

      (a) With or on behalf of an immediate family

member of the person; or

      (b) Secured by a dwelling that served as the

person’s residence.

      9.  Agencies of the United States and of

this State and its political subdivisions, including the Public Employees’

Retirement System.

      10.  A seller of real property who offers

credit secured by a mortgage of the property sold.

      11.  A nonprofit agency or organization:

      (a) Which provides self-help housing for a

borrower who has provided part of the labor to construct the dwelling securing

the borrower’s loan;

      (b) Which does not charge or collect origination

fees in connection with the origination of residential mortgage loans;

      (c) Which only makes residential mortgage loans

at an interest rate of 0 percent per annum;

      (d) Whose volunteers, if any, do not receive

compensation for their services in the construction of a dwelling; and

      (e) Which does not profit from the sale of a

dwelling to a borrower.

      12.  A housing counseling agency approved

by the United States Department of Housing and Urban Development.

      (Added to NRS by 1999, 3746; A 2003, 3559; 2007, 959; 2009, 1557;

2011, 3625)

      NRS 645E.160  Certificate of exemption required for certain persons and

entities; application; fee; automatic expiration; prohibitions; administrative

fines; certificate of exemption for purposes of complying with requirements of

Registry; applicability of chapter to persons filing application for purpose of

complying with requirements of Registry.

      1.  Except as otherwise provided in

subsection 2, a person who claims an exemption from the provisions of this

chapter pursuant to subsection 1 of NRS 645E.150

must:

      (a) File a written application for a certificate

of exemption with the Office of the Commissioner;

      (b) Pay the fee required pursuant to NRS 645E.280;

      (c) Include with the written application

satisfactory proof that the person meets the requirements of subsection 1 of NRS 645E.150; and

      (d) Provide evidence to the Commissioner that the

person is duly licensed to conduct his or her business, including, if

applicable, the right to transact mortgage loans, and such license is in good

standing pursuant to the laws of this State, any other state or the United

States.

      2.  The provisions of subsection 1 do not

apply to the extent preempted by federal law.

      3.  The Commissioner may require a person

who claims an exemption from the provisions of this chapter pursuant to

subsections 2 to 12, inclusive, of NRS 645E.150

to:

      (a) File a written application for a certificate

of exemption with the Office of the Commissioner;

      (b) Pay the fee required pursuant to NRS 645E.280; and

      (c) Include with the written application

satisfactory proof that the person meets the requirements of at least one of

those exemptions.

      4.  A certificate of exemption expires

automatically if, at any time, the person who claims the exemption no longer

meets the requirements of at least one exemption set forth in the provisions of

NRS 645E.150.

      5.  If a certificate of exemption expires

automatically pursuant to this section, the person shall not provide any of the

services of a mortgage banker or otherwise engage in, carry on or hold himself

or herself out as engaging in or carrying on the business of a mortgage banker

unless the person applies for and is issued:

      (a) A license as a mortgage banker pursuant to

this chapter; or

      (b) Another certificate of exemption.

      6.  The Commissioner may impose upon a

person who is required to apply for a certificate of exemption or who holds a

certificate of exemption an administrative fine of not more than $10,000 for

each violation that he or she commits, if the person:

      (a) Has knowingly made or caused to be made to

the Commissioner any false representation of material fact;

      (b) Has suppressed or withheld from the

Commissioner any information which the person possesses and which, if submitted

by him or her, would have rendered the person ineligible to hold a certificate

of exemption; or

      (c) Has violated any provision of this chapter, a

regulation adopted pursuant to this chapter or an order of the Commissioner

that applies to a person who is required to apply for a certificate of

exemption or who holds a certificate of exemption.

      7.  A person who is exempt from the

requirements of this chapter may file a written application for a certificate

of exemption with the Office of the Commissioner for the purposes of complying

with the requirements of the Registry or enabling a mortgage agent to comply

with the requirements of the Registry.

      8.  The Commissioner may require an

applicant or person described in subsection 7 to submit the information or pay

the fee directly to the Division or, if the applicant or person is required to

register or voluntarily registers with the Registry, to the Division through

the Registry.

      9.  An application filed pursuant to

subsection 7 does not affect the applicability of this chapter to such an

applicant or person.

      (Added to NRS by 1999, 3746; A 2003, 3559; 2007, 960; 2009, 1557;

2011, 3626)

      NRS 645E.170  Exemptions for certain loans; application; grounds for granting

exemption; powers and duties of Commissioner.

      1.  A person may apply to the Commissioner

for an exemption from the provisions of this chapter governing the making of a

loan of money only for a loan secured by commercial property.

      2.  The Commissioner may grant the

exemption if the Commissioner finds that:

      (a) The making of the loan would not be

detrimental to the financial condition of the lender or the debtor;

      (b) The lender or the debtor has established a

record of sound performance, efficient management, financial responsibility and

integrity;

      (c) The making of the loan is likely to increase

the availability of capital for a sector of the state economy; and

      (d) The making of the loan is not detrimental to

the public interest.

      3.  The Commissioner:

      (a) May revoke an exemption unless the loan for

which the exemption was granted has been made; and

      (b) Shall issue a written statement setting forth

the reasons for his or her decision to grant, deny or revoke an exemption.

      (Added to NRS by 1999, 3747; A 2011, 3627)

LICENSING OF MORTGAGE BANKERS

      NRS 645E.200  Application for license; application for branch offices;

requirements for issuance of license; grounds for denial of license to

partnership, corporation or unincorporated association; license for office

outside Nevada which conducts business in Nevada.

      1.  A person who wishes to be licensed as a

mortgage banker must file a written application for a license with the Office

of the Commissioner and pay the fee required pursuant to NRS 645E.280. An application for a license as a

mortgage banker must:

      (a) Be verified.

      (b) State the name, residence address and

business address of the applicant and the location of each principal office and

branch office at which the mortgage banker will conduct business in this State,

including, without limitation, any office or other place of business located

outside this State from which the mortgage banker will conduct business in this

State and any office or other place of business which the applicant maintains

as a corporate or home office.

      (c) State the name under which the applicant will

conduct business as a mortgage banker.

      (d) If the applicant is not a natural person,

list the name, residence address and business address of each person who will

have an interest in the mortgage banker as a principal, partner, officer,

director or trustee, specifying the capacity and title of each such person.

      (e) Indicate the general plan and character of

the business.

      (f) State the length of time the applicant has

been engaged in the business of a mortgage banker.

      (g) Include a financial statement of the

applicant.

      (h) Include a complete set of fingerprints for

each natural person who is a principal, partner, officer, director or trustee

of the applicant which the Division may forward to the Central Repository for

Nevada Records of Criminal History for submission to the Federal Bureau of

Investigation for its report.

      (i) Include any other information required

pursuant to the regulations adopted by the Commissioner or an order of the

Commissioner.

      2.  If a mortgage banker will conduct

business in this State at one or more branch offices, the mortgage banker must

apply for a license for each such branch office.

      3.  Except as otherwise provided by law,

the Commissioner shall issue a license to an applicant as a mortgage banker if:

      (a) The application is verified by the

Commissioner and complies with the requirements of this chapter, other

applicable law and, if applicable, the Registry; and

      (b) The applicant and each general partner,

officer or director of the applicant, if the applicant is a partnership,

corporation or unincorporated association:

             (1) Has demonstrated financial

responsibility, character and general fitness so as to command the confidence

of the community and warrant a determination that the applicant will operate

honestly, fairly and efficiently for the purposes of this chapter. For the

purposes of this subparagraph, the factors considered in determining whether a

person has demonstrated financial responsibility include, without limitation:

                   (I) Whether the person’s personal

credit history indicates any adverse material items, including, without

limitation, liens, judgments, disciplinary action, bankruptcies, foreclosures

or failures to comply with court-approved payment plans;

                   (II) The circumstances surrounding

any adverse material items in the person’s personal credit history; and

                   (III) Any instance of fraud,

misrepresentation, dishonest business practices, the mishandling of trust funds

or other types of comparable behavior.

             (2) Has not been convicted of, or entered

or agreed to enter a plea of guilty or nolo contendere to, a felony in a

domestic, foreign or military court within the 7 years immediately preceding

the date of the application, or at any time if such felony involved an act of

fraud, dishonesty or a breach of trust, moral turpitude or money laundering.

             (3) Has not made a false statement of

material fact on the application.

             (4) Has never had a license or

registration as a mortgage agent, mortgage banker, mortgage broker or

residential mortgage loan originator revoked in this State or any other

jurisdiction or had a financial services license revoked within the immediately

preceding 10 years.

             (5) Has not violated any provision of this

chapter or chapter 645B of NRS, a

regulation adopted pursuant thereto or an order of the Commissioner.

      4.  If an applicant is a partnership,

corporation or unincorporated association, the Commissioner may refuse to issue

a license to the applicant if any member of the partnership or any officer or

director of the corporation or unincorporated association has committed any act

or omission that would be cause for refusing to issue a license to a natural

person.

      5.  A person may apply for a license for an

office or other place of business located outside this State from which the

applicant will conduct business in this State if the applicant or a subsidiary

or affiliate of the applicant has a license issued pursuant to this chapter for

an office or other place of business located in this State and if the applicant

submits with the application for a license a statement signed by the applicant

which states that the applicant agrees to:

      (a) Make available at a location within this

State the books, accounts, papers, records and files of the office or place of

business located outside this State to the Commissioner or a representative of

the Commissioner; or

      (b) Pay the reasonable expenses for travel, meals

and lodging of the Commissioner or a representative of the Commissioner

incurred during any investigation or examination made at the office or place of

business located outside this State.

Ê The

applicant must be allowed to choose between paragraph (a) or (b) in complying

with the provisions of this subsection.

      (Added to NRS by 1999, 3748; A 2001, 2045; 2003, 2726, 3560; 2011, 3627)

      NRS 645E.210  Payment of child support: Submission of certain information by

applicant; grounds for denial of license; duty of Commissioner. [Effective

until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each

state to establish procedures for withholding, suspending and restricting the

professional, occupational and recreational licenses for child support

arrearages and for noncompliance with certain processes relating to paternity

or child support proceedings.]

      1.  In addition to any other requirements

set forth in this chapter:

      (a) A natural person who applies for the issuance

of a license as a mortgage banker shall include the social security number of

the applicant in the application submitted to the Commissioner.

      (b) A natural person who applies for the issuance

or renewal of a license as a mortgage banker shall submit to the Commissioner

the statement prescribed by the Division of Welfare and Supportive Services of

the Department of Health and Human Services pursuant to NRS 425.520. The statement must be

completed and signed by the applicant.

      2.  The Commissioner shall include the

statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must

be submitted for the issuance or renewal of the license; or

      (b) A separate form prescribed by the

Commissioner.

      3.  The Commissioner shall not issue or

renew a license as a mortgage banker if the applicant is a natural person who:

      (a) Fails to submit the statement required

pursuant to subsection 1; or

      (b) Indicates on the statement submitted pursuant

to subsection 1 that the applicant is subject to a court order for the support

of a child and is not in compliance with the order or a plan approved by the

district attorney or other public agency enforcing the order for the repayment

of the amount owed pursuant to the order.

      4.  If an applicant indicates on the

statement submitted pursuant to subsection 1 that the applicant is subject to a

court order for the support of a child and is not in compliance with the order

or a plan approved by the district attorney or other public agency enforcing

the order for the repayment of the amount owed pursuant to the order, the

Commissioner shall advise the applicant to contact the district attorney or

other public agency enforcing the order to determine the actions that the

applicant may take to satisfy the arrearage.

      (Added to NRS by 1999, 3750; A 2003, 3562; 2005, 2791, 2810, 2817)

      NRS 645E.210  Payment of child support:

Submission of certain information by applicant; grounds for denial of license;

duty of Commissioner. [Effective on the date of the repeal of 42 U.S.C. § 666,

the federal law requiring each state to establish procedures for withholding,

suspending and restricting the professional, occupational and recreational

licenses for child support arrearages and for noncompliance with certain

processes relating to paternity or child support proceedings and expires by

limitation 2 years after that date.]

      1.  In addition to any other requirements

set forth in this chapter, a natural person who applies for the issuance or

renewal of a license as a mortgage banker shall submit to the Commissioner the

statement prescribed by the Division of Welfare and Supportive Services of the

Department of Health and Human Services pursuant to NRS 425.520. The statement must be

completed and signed by the applicant.

      2.  The Commissioner shall include the

statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must

be submitted for the issuance or renewal of the license; or

      (b) A separate form prescribed by the

Commissioner.

      3.  The Commissioner shall not issue or

renew a license as a mortgage banker if the applicant is a natural person who:

      (a) Fails to submit the statement required

pursuant to subsection 1; or

      (b) Indicates on the statement submitted pursuant

to subsection 1 that the applicant is subject to a court order for the support

of a child and is not in compliance with the order or a plan approved by the

district attorney or other public agency enforcing the order for the repayment

of the amount owed pursuant to the order.

      4.  If an applicant indicates on the statement

submitted pursuant to subsection 1 that the applicant is subject to a court

order for the support of a child and is not in compliance with the order or a

plan approved by the district attorney or other public agency enforcing the

order for the repayment of the amount owed pursuant to the order, the

Commissioner shall advise the applicant to contact the district attorney or

other public agency enforcing the order to determine the actions that the

applicant may take to satisfy the arrearage.

      (Added to NRS by 1999, 3750; A 2003, 3562; 2005, 2791, 2810, 2817,

effective on the date of the repeal of 42 U.S.C. § 666, the federal law

requiring each state to establish procedures for withholding, suspending and

restricting the professional, occupational and recreational licenses for child

support arrearages and for noncompliance with certain processes relating to

paternity or child support proceedings)

      NRS 645E.220  Posting of license; restrictions on transfer or assignment of

license.

      1.  A mortgage banker shall post each

license in a conspicuous place in the office for which the license has been

issued.

      2.  A mortgage banker may not transfer or

assign a license to another person, unless the Commissioner gives written

approval.

      (Added to NRS by 1999, 3751; A 2003, 3562)

      NRS 645E.230  Activities authorized by license; dual licensure as mortgage

banker and mortgage broker.

      1.  A license entitles a licensee to engage

only in the activities authorized by this chapter.

      2.  The provisions of this chapter do not

prohibit a licensee from:

      (a) Holding a license as a mortgage broker

pursuant to chapter 645B of NRS; or

      (b) Conducting the business of a mortgage banker

and the business of a mortgage broker in the same office or place of business.

      (Added to NRS by 1999, 3750; A 2003, 3562)

EXPIRATION AND RENEWAL OF MORTGAGE BANKER’S LICENSE OR

CERTIFICATE OF EXEMPTION; FEES

      NRS 645E.280  Annual expiration of license or certificate of exemption;

procedure for renewal; fees.

      1.  A license issued to a mortgage banker

pursuant to this chapter expires each year on December 31, unless it is

renewed. To renew a license, the licensee must submit to the Commissioner on or

after November 1 and on or before December 31 of each year, or on a date

otherwise specified by the Commissioner by regulation:

      (a) An application for renewal that complies with

the requirements of this chapter;

      (b) The fee required to renew the license

pursuant to this section; and

      (c) All information required by the Commissioner

or, if applicable, required by the Registry to complete the renewal.

      2.  If the licensee fails to submit any

item required pursuant to subsection 1 to the Commissioner on or after November

1 and on or before December 31 of any year, unless a different date is

specified by the Commissioner by regulation, the license is cancelled as of

December 31 of that year. The Commissioner may reinstate a cancelled license if

the licensee submits to the Commissioner on or before February 28 of the

following year:

      (a) An application for renewal that complies with

the requirements of this chapter;

      (b) The fee required to renew the license

pursuant to this section;

      (c) Except as otherwise provided in this section,

a reinstatement fee of not more than $200; and

      (d) All information required to complete the

reinstatement.

      3.  Except as otherwise provided in NRS 645E.160, a certificate of exemption issued

pursuant to this chapter expires each year on December 31, unless it is

renewed. To renew a certificate of exemption, a person must submit to the

Commissioner on or after November 1 and on or before December 31 of each year,

or on a date otherwise specified by the Commissioner by regulation:

      (a) An application for renewal that complies with

the requirements of this chapter; and

      (b) The fee required to renew the certificate of

exemption.

      4.  If the person fails to submit any item

required pursuant to subsection 3 to the Commissioner on or after November 1

and on or before December 31 of any year, unless a different date is specified

by the Commissioner by regulation, the certificate of exemption is cancelled.

Except as otherwise provided in NRS 645E.160, the

Commissioner may reinstate a cancelled certificate of exemption if the person

submits to the Commissioner on or before February 28 of the following year:

      (a) An application for renewal that complies with

the requirements of this chapter;

      (b) The fee required to renew the certificate of

exemption; and

      (c) Except as otherwise provided in this section,

a reinstatement fee of not more than $100.

      5.  Except as otherwise provided in this

section, a person must pay the following fees to apply for, to be issued or to

renew a license as a mortgage banker pursuant to this chapter:

      (a) To file an original application for a

license, not more than $1,500 for the principal office and not more than $40

for each branch office. The person must also pay such additional expenses

incurred in the process of investigation as the Commissioner deems necessary.

      (b) To be issued a license, not more than $1,000

for the principal office and not more than $60 for each branch office.

      (c) To renew a license, not more than $500 for

the principal office and not more than $100 for each branch office.

      6.  Except as otherwise provided in this

section, a person must pay the following fees to apply for or to renew a

certificate of exemption pursuant to this chapter:

      (a) To file an application for a certificate of

exemption, not more than $200.

      (b) To renew a certificate of exemption, not more

than $100.

      7.  To be issued a duplicate copy of any

license or certificate of exemption, a person must make a satisfactory showing

of its loss and pay a fee of not more than $10.

      8.  Except as otherwise provided in this

chapter, all fees received pursuant to this chapter are in addition to any fee

required to be paid to the Registry and must be deposited in the Account for

Mortgage Lending created by NRS 645F.270.

      9.  The Commissioner may, by regulation,

adjust any fee set forth in this section if the Commissioner determines that

such an adjustment is necessary for the Commissioner to carry out his or her

duties pursuant to this chapter. The amount of any adjustment in a fee pursuant

to this subsection must not exceed the amount determined to be necessary for

the Commissioner to carry out his or her duties pursuant to this chapter.

      10.  The Commissioner may require a

licensee to submit an item or pay a fee required by this section directly to

the Division or, if the licensee is required to register or voluntarily

registers with the Registry, to the Division through the Registry.

      (Added to NRS by 1999, 3749; A 2003, 3230, 3562; 2003,

20th Special Session, 265; 2007, 961; 2011, 3629)

LICENSING AS AND SUPERVISION OF MORTGAGE AGENTS

      NRS 645E.290  Licensure as mortgage agent required for certain persons who

engage in activities as loan originator or who supervise mortgage agents who

engage in such activities.

      1.  Any person licensed as a mortgage

banker under this chapter and who engages in activities as a loan originator or

who supervises a mortgage agent who engages in activities as a loan originator,

and any employee or independent contractor of a mortgage banker who engages in

activities as a loan originator, must be licensed as a mortgage agent pursuant

to the provisions of NRS 645B.400 to 645B.460, inclusive.

      2.  As used in this section:

      (a) “Clerical or ministerial tasks” means

communication with a person to obtain, and the receipt, collection and

distribution of, information necessary for the processing or underwriting of a

loan.

      (b) “Loan originator” means a natural person who

takes a loan application or offers or negotiates terms of a loan for

compensation or other pecuniary gain. The term does not include:

             (1) A person who performs clerical or

ministerial tasks as an employee at the direction of and subject to the

supervision and instruction of a person licensed or exempt from licensing under

this chapter, unless the person who performs such clerical or ministerial tasks

is an independent contractor; or

             (2) A person solely involved in extensions

of credit relating to timeshare plans, as that term is defined in 11 U.S.C. §

101(53D).

      (Added to NRS by 2009, 2687;

A 2011,

3631)

      NRS 645E.291  Supervision of mortgage agents by mortgage banker; requirements;

regulations.

      1.  A mortgage banker shall exercise

reasonable supervision and control over the activities of his or her mortgage

agents and must also be licensed as a mortgage agent if required pursuant to NRS 645E.290. Such reasonable supervision and control

must include, as appropriate:

      (a) The establishment of written policies and

procedures for the mortgage agents;

      (b) The establishment of a system to review,

oversee and inspect the activities of the mortgage agents, including, without

limitation:

             (1) Transactions handled by the mortgage

agents pursuant to this chapter;

             (2) Communications between the mortgage

agents and a party to such a transaction;

             (3) Documents prepared by the mortgage

agents that may have a material effect upon the rights or obligations of a

party to such a transaction; and

             (4) The handling by the mortgage agents of

any fee, deposit or money paid to the mortgage banker or the mortgage agents or

held in trust by the mortgage banker or the mortgage agents pursuant to this

chapter; and

      (c) The establishment of a system of reporting to

the Division of any fraudulent activity engaged in by any of the mortgage

agents.

      2.  The Commissioner shall allow a mortgage

banker to take into consideration the total number of mortgage agents

associated with or employed by the mortgage banker when the mortgage banker

determines the form and extent of the policies and procedures for those

mortgage agents and the system to review, oversee and inspect the activities of

those mortgage agents.

      3.  The Commissioner may adopt regulations

prescribing standards for determining whether a mortgage banker has exercised

reasonable supervision and control over the activities of a mortgage agent

pursuant to this section.

      (Added to NRS by 2009, 2687;

A 2011,

3631; 2013,

120)

SUPERVISION BY COMMISSIONER

General Provisions

      NRS 645E.300  Duties of Commissioner: Regulations; investigations; annual

examinations; periodic and special audits; hearings; related fees; biennial

examinations.

      1.  Subject to the administrative control

of the Director of the Department of Business and Industry, the Commissioner

shall exercise general supervision and control over mortgage bankers doing

business in this State.

      2.  In addition to the other duties imposed

upon him or her by law, the Commissioner shall:

      (a) Adopt regulations establishing reasonable

limitations and guidelines on loans made by a mortgage banker to a director,

officer or employee of the mortgage banker.

      (b) Adopt any other regulations that are

necessary to carry out the provisions of this chapter, except as to loan fees.

      (c) Conduct such investigations as may be

necessary to determine whether any person has violated any provision of this

chapter, a regulation adopted pursuant to this chapter or an order of the

Commissioner.

      (d) Except as otherwise provided in subsection 4,

conduct an annual examination of each mortgage banker doing business in this

State.

      (e) Conduct such other examinations, periodic or

special audits, investigations and hearings as may be necessary for the

efficient administration of the laws of this State regarding mortgage bankers.

      (f) Classify as confidential certain records and

information obtained by the Division when those matters are obtained from a

governmental agency upon the express condition that they remain confidential.

This paragraph does not limit examination by:

             (1) The Legislative Auditor; or

             (2) The Department of Taxation if

necessary to carry out the provisions of chapter

363A of NRS.

      (g) Conduct such examinations and investigations

as are necessary to ensure that mortgage bankers meet the requirements of this

chapter for obtaining a license, both at the time of the application for a

license and thereafter on a continuing basis.

      3.  For each special audit, investigation

or examination, a mortgage banker shall pay a fee based on the rate established

pursuant to NRS 645F.280.

      4.  The Commissioner may conduct biennial

examinations of a mortgage banker instead of annual examinations, as described

in paragraph (d) of subsection 2, if the mortgage banker:

      (a) Received a rating in the last annual

examination that meets a threshold determined by the Commissioner;

      (b) Has not had any adverse change in financial

condition since the last annual examination, as shown by financial statements

of the mortgage banker; and

      (c) Has not had any complaints received by the

Division that resulted in any administrative action by the Division.

      (Added to NRS by 1999, 3751; A 2003, 3564; 2003,

20th Special Session, 223; 2007, 962)

      NRS 645E.310  Subpoenas; oaths; examination of witnesses; penalty; assessment

of costs.

      1.  In the conduct of any examination,

periodic or special audit, investigation or hearing, the Commissioner may:

      (a) Compel the attendance of any person by

subpoena.

      (b) Compel the production of any document by

subpoena.

      (c) Administer oaths.

      (d) Examine any person under oath concerning the

business and conduct of affairs of any person subject to the provisions of this

chapter and, in connection therewith, require the production of any books,

records or papers relevant to the inquiry.

      2.  Any person subpoenaed under the

provisions of this section who willfully refuses or willfully neglects to

appear at the time and place named in the subpoena or to produce books, records

or papers required by the Commissioner, or who refuses to be sworn or answer as

a witness, is guilty of a misdemeanor.

      3.  In addition to the authority to recover

attorney’s fees and costs pursuant to any other statute, the Commissioner may

assess against and collect from a person all costs, including, without

limitation, reasonable attorney’s fees, that are attributable to any

examination, periodic or special audit, investigation or hearing that is

conducted to examine or investigate the conduct, activities or business of the

person pursuant to this chapter.

      (Added to NRS by 1999, 3752; A 2003, 3473; 2009, 1558)

      NRS 645E.315  Written notice of address change; approval by Commissioner;

administrative fine.

      1.  A licensee who wishes to change the

address of an office or other place of business for which the licensee has a

license pursuant to this chapter must, at least 10 days before changing the

address, give written notice of the proposed change to the Commissioner.

      2.  Upon receipt of the proposed change of

address pursuant to subsection 1, the Commissioner shall provide written

approval of the change and the date of the approval.

      3.  If a licensee fails to provide notice

as required pursuant to subsection 1, the Commissioner may impose an

administrative fine in an amount not to exceed $500.

      (Added to NRS by 2001, 2044)

      NRS 645E.320  Payment of statutory assessment by mortgage banker; duty of

mortgage banker to cooperate fully with audits and examinations.  Each mortgage banker shall pay the assessment

levied pursuant to NRS 645F.180 and

cooperate fully with the audits and examinations performed pursuant thereto.

      (Added to NRS by 1999, 3752; A 2003, 3564)

Records and Financial Statements

      NRS 645E.350  Records relating to mortgage transactions, financial condition

and trust accounts; monthly report to Commissioner; accounting procedures for

trust accounts; regulations; records of licensee who operates outside Nevada;

mortgage bankers required to submit reports to Registry.

      1.  Each mortgage banker shall keep and

maintain at all times at each location where the mortgage banker conducts

business in this State complete and suitable records of all mortgage

transactions made by the mortgage banker at that location. Each mortgage banker

shall also keep and maintain at all times at each such location all original

books, papers and data, or copies thereof, clearly reflecting the financial

condition of the business of the mortgage banker.

      2.  Each mortgage banker shall submit to

the Commissioner each month a report of the mortgage banker’s activity for the

previous month. The report must:

      (a) Specify the volume of loans made by the

mortgage banker for the month or state that no loans were made in that month;

      (b) Include any information required pursuant to

the regulations adopted by the Commissioner; and

      (c) Be submitted to the Commissioner by the 15th

day of the month following the month for which the report is made.

      3.  The Commissioner may adopt regulations

prescribing accounting procedures for mortgage bankers handling trust accounts

and the requirements for keeping records relating to such accounts.

      4.  A licensee who operates outside this

State an office or other place of business which is licensed pursuant to this

chapter shall:

      (a) Make available at a location within this

State the books, accounts, papers, records and files of the office or place of

business located outside this State to the Commissioner or a representative of

the Commissioner; or

      (b) Pay the reasonable expenses for travel, meals

and lodging of the Commissioner or a representative of the Commissioner

incurred during any investigation or examination made at the office or place of

business located outside this State.

Ê The licensee

must be allowed to choose between paragraph (a) or (b) in complying with the

provisions of this subsection.

      5.  Each mortgage banker who is required to

register or voluntarily registers with the Registry shall submit to the

Registry and the Commissioner a report of condition or any other report

required by the Registry in the form and at the time required by the Registry.

      (Added to NRS by 1999, 3752; A 2001, 2046; 2003, 3564; 2011, 3632)

      NRS 645E.360  Annual financial statement; audit of trust accounts;

Commissioner authorized to direct submission of financial statement;

regulations.

      1.  Except as otherwise provided in this

section, not later than 90 days after the last day of each fiscal year for a

mortgage banker, the mortgage banker shall submit to the Commissioner a

financial statement that:

      (a) Is dated not earlier than the last day of the

fiscal year; and

      (b) Has been prepared from the books and records

of the mortgage banker by an independent certified public accountant who holds

a license to practice in this State or in any other state that has not been

revoked or suspended.

      2.  Unless otherwise prohibited by the

Registry, the Commissioner may grant a reasonable extension for the submission

of a financial statement pursuant to this section if a mortgage banker requests

such an extension before the date on which the financial statement is due.

      3.  If a mortgage banker maintains any

accounts described in NRS 645E.430, the financial

statement submitted pursuant to this section must be audited.

      4.  The Commissioner may require the

financial statement to be submitted directly to the Commissioner or, if the

mortgage banker that submits the financial statement is required to register or

voluntarily registers with the Registry, to the Division through the Registry.

      5.  The Commissioner shall adopt

regulations prescribing the scope of an audit conducted pursuant to subsection

3.

      (Added to NRS by 1999, 3753; A 2003, 3565; 2007, 963; 2011, 3633)

      NRS 645E.370  Records of Commissioner: General provisions governing public

inspection and confidentiality.

      1.  Except as otherwise provided in this

section or by specific statute, all papers, documents, reports and other

written instruments filed with the Commissioner pursuant to this chapter are

open to public inspection.

      2.  The Commissioner may withhold from

public inspection or refuse to disclose to a person, for such time as the

Commissioner considers necessary, any information that, in the Commissioner’s

judgment, would:

      (a) Impede or otherwise interfere with an

investigation that is currently pending against a mortgage banker; or

      (b) Have an undesirable effect on the welfare of

the public or the welfare of any mortgage banker.

      (Added to NRS by 1999, 3753; A 2003, 3565)

      NRS 645E.375  Records of Commissioner: Certain records relating to

investigation deemed confidential; certain records relating to disciplinary

action deemed public records; disclosure by Commissioner.

      1.  Except as otherwise provided in this

section and NRS 239.0115, a complaint

filed with the Commissioner, all documents and other information filed with the

complaint and all documents and other information compiled as a result of an

investigation conducted to determine whether to initiate disciplinary action

are confidential.

      2.  The complaint or other document filed

by the Commissioner to initiate disciplinary action and all documents and

information considered by the Commissioner when determining whether to impose

discipline are public records.

      3.  The Commissioner may disclose any

document or information made confidential under subsection 1 to the party

against whom the complaint is made, a licensing board or agency, the Registry

or any other governmental agency, including, without limitation, a law

enforcement agency.

      (Added to NRS by 2003, 3472; A 2007, 2148; 2011, 3633)

Transfer of Stock

      NRS 645E.390  Notification of certain transfers required; application to

Commissioner for approval of change of control; investigation; waiver.

      1.  The Commissioner must be notified of a

transfer of 10 percent or more of the outstanding voting stock of a mortgage

banker and must approve a transfer of voting stock of a mortgage banker which

constitutes a change of control.

      2.  The person who acquires stock resulting

in a change of control of the mortgage banker shall apply to the Commissioner

for approval of the transfer. The application must contain information which

shows that the requirements of this chapter and of the Registry, if applicable,

for obtaining a license will be satisfied after the change of control. Except

as otherwise provided in subsection 3, the Commissioner shall conduct an

investigation to determine whether those requirements will be satisfied. If,

after the investigation, the Commissioner denies the application, the

Commissioner may forbid the applicant from participating in the business of the

mortgage banker.

      3.  A mortgage banker may submit a written

request to the Commissioner to waive an investigation pursuant to subsection 2.

The Commissioner may grant a waiver if the applicant has undergone a similar

investigation by a state or federal agency in connection with the licensing of

or his or her employment with a financial institution.

      4.  As used in this section, “change of

control” means:

      (a) A transfer of voting stock which results in

giving a person, directly or indirectly, the power to direct the management and

policy of a mortgage banker; or

      (b) A transfer of at least 25 percent of the

outstanding voting stock of a mortgage banker.

      (Added to NRS by 1999, 3751; A 2003, 3565; 2011, 3634)

ESCROW AND TRUST ACCOUNTS

      NRS 645E.420  Escrow account required for fee, salary, deposit or money paid

in advance; release from escrow; exceptions; refunds; penalty.

      1.  Except as otherwise permitted by law

and as otherwise provided in subsection 3, the amount of any advance fee,

salary, deposit or money paid to any mortgage banker or other person to obtain

a loan secured by a lien on real property must be placed in escrow pending

completion of the loan or a commitment for the loan.

      2.  The amount held in escrow pursuant to

subsection 1 must be released:

      (a) Upon completion of the loan or commitment for

the loan, to the mortgage banker or other person to whom the advance fee,

salary, deposit or money was paid.

      (b) If the loan or commitment for the loan fails,

to the person who made the payment.

      3.  Advance payments to cover reasonably

estimated costs paid to third persons are excluded from the provisions of

subsections 1 and 2 if the person making them first signs a written agreement

which specifies the estimated costs by item and the estimated aggregate cost,

and which recites that money advanced for costs will not be refunded. If an

itemized service is not performed and the estimated cost thereof is not

refunded, the recipient of the advance payment is subject to the penalties

provided in NRS 645E.960.

      (Added to NRS by 1999, 3753; A 2003, 3566; 2011, 3634)

      NRS 645E.430  Trust account required for money deposited to pay taxes or

insurance premiums; fiduciary duty of mortgage banker; accounting to debtor and

Commissioner; additional duties and prohibitions.

      1.  All money paid to a mortgage banker for

payment of taxes or insurance premiums on real property which secures any loan

made by the mortgage banker must be deposited in an insured depository

financial institution and kept separate, distinct and apart from money

belonging to the mortgage banker. Such money, when deposited, is to be

designated as an “impound trust account” or under some other appropriate name

indicating that the accounts are not the money of the mortgage banker.

      2.  The mortgage banker has a fiduciary

duty to each debtor with respect to the money in an impound trust account.

      3.  The mortgage banker shall, upon

reasonable notice, account to any debtor whose real property secures a loan

made by the mortgage banker for any money which that person has paid to the

mortgage banker for the payment of taxes or insurance premiums on the real

property.

      4.  The mortgage banker shall, upon

reasonable notice, account to the Commissioner for all money in an impound

trust account.

      5.  A mortgage banker shall:

      (a) Require contributions to an impound trust

account in an amount reasonably necessary to pay the obligations as they become

due.

      (b) Within 30 days after the completion of the

annual review of an impound trust account, notify the debtor:

             (1) Of the amount by which the

contributions exceed the amount reasonably necessary to pay the annual

obligations due from the account; and

             (2) That the debtor may specify the

disposition of the excess money within 20 days after receipt of the notice. If

the debtor fails to specify such a disposition within that time, the mortgage

banker shall maintain the excess money in the account.

Ê This

subsection does not prohibit a mortgage banker from requiring additional

amounts to be paid into an impound trust account to recover a deficiency that

exists in the account.

      6.  A mortgage banker shall not make

payments from an impound trust account in a manner that causes a policy of

insurance to be cancelled or causes property taxes or similar payments to

become delinquent.

      (Added to NRS by 1999, 3754; A 2003, 3566)

      NRS 645E.440  Limitations on execution or attachment of money in trust

account; commingling of money prohibited.

      1.  Money in an impound trust account is

not subject to execution or attachment on any claim against the mortgage

banker.

      2.  It is unlawful for a mortgage banker

knowingly to keep or cause to be kept any money in a depository financial

institution under the heading of “impound trust account” or any other name

designating such money as belonging to the debtors of the mortgage banker,

unless the money has been paid to the mortgage banker by a debtor pursuant to NRS 645E.430 and is being held in trust by the

mortgage banker pursuant to the provisions of that section.

      (Added to NRS by 1999, 3754; A 2003, 3567)

LOAN PAYMENTS

      NRS 645E.470  Limitations on charging late fee, additional amount of interest

or other penalty.

      1.  If a person is required to make a

payment to a mortgage banker pursuant to the terms of a loan secured by a lien

on real property, the mortgage banker may not charge the person a late fee, an

additional amount of interest or any other penalty in connection with that

payment if the payment is delivered to the mortgage banker before 5 p.m. on:

      (a) The day that the payment is due pursuant to

the terms of the loan, if an office of the mortgage banker is open to customers

until 5 p.m. on that day; or

      (b) The next day that an office of the mortgage

banker is open to customers until 5 p.m., if the provisions of paragraph (a) do

not otherwise apply.

      2.  A person and a mortgage banker may not

agree to alter or waive the provisions of this section by contract or other

agreement, and any such contract or agreement is void and must not be given

effect to the extent that it violates the provisions of this section.

      (Added to NRS by 1999, 3755; A 2003, 3567)

INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIAL

ACTION

      NRS 645E.620  Authority of Commissioner when violation is suspected; referral

of violations to district attorney for criminal prosecution; civil action for

injunctive relief.

      1.  Whether or not a complaint has been

filed, the Commissioner may investigate a mortgage banker or other person if,

for any reason, it appears that:

      (a) The mortgage banker is conducting business in

an unsafe and injurious manner or in violation of any provision of this

chapter, a regulation adopted pursuant to this chapter or an order of the

Commissioner;

      (b) The person is offering or providing any of

the services of a mortgage banker or otherwise engaging in, carrying on or

holding himself or herself out as engaging in or carrying on the business of a

mortgage banker without being licensed or exempt from licensing pursuant to the

provisions of this chapter; or

      (c) The person is violating any other provision

of this chapter, a regulation adopted pursuant to this chapter or an order of

the Commissioner.

      2.  If, upon investigation, the

Commissioner has reasonable cause to believe that the mortgage banker or other

person has engaged in any conduct or committed any violation described in subsection

1, the Commissioner may:

      (a) Advise the district attorney of the county in

which the conduct or violation occurred, and the district attorney shall cause

the appropriate legal action to be taken against the mortgage banker or other

person to enjoin the conduct or the operation of the business or prosecute the

violation; and

      (b) Bring a civil action to:

             (1) Enjoin the mortgage banker or other

person from engaging in the conduct, operating the business or committing the

violation; and

             (2) Enjoin any other person who has

encouraged, facilitated, aided or participated in the conduct, the operation of

the business or the commission of the violation, or who is likely to engage in

such acts, from engaging in or continuing to engage in such acts.

      3.  If the Commissioner brings a civil

action pursuant to subsection 2, the district court of any county of this State

is hereby vested with the jurisdiction in equity to enjoin the conduct, the

operation of the business or the commission of the violation and may grant any

injunctions that are necessary to prevent and restrain the conduct, the

operation of the business or the commission of the violation. During the

pendency of the proceedings before the district court:

      (a) The court may issue any temporary restraining

orders as may appear to be just and proper;

      (b) The findings of the Commissioner shall be

deemed to be prima facie evidence and sufficient grounds, in the discretion of

the court, for the ex parte issuance of a temporary restraining order; and

      (c) The Commissioner may apply for and on due

showing is entitled to have issued the court’s subpoena requiring forthwith the

appearance of any person to:

             (1) Produce any documents, books and

records as may appear necessary for the hearing of the petition; and

             (2) Testify and give evidence concerning

the conduct complained of in the petition.

      (Added to NRS by 1999, 3755; A 2003, 3568)

      NRS 645E.630  Authority of Commissioner when unsafe condition or practice is

suspected; seizure of property and assets of mortgage banker; duties of

Attorney General.

      1.  In addition to any other action that is

permitted pursuant to this chapter, if the Commissioner has reasonable cause to

believe that:

      (a) The assets or capital of a mortgage banker

are impaired; or

      (b) A mortgage banker is conducting business in

an unsafe and injurious manner that may result in danger to the public,

Ê the

Commissioner may immediately take possession of all the property, business and

assets of the mortgage banker that are located in this state and retain

possession of them pending further proceedings provided for in this chapter.

      2.  If the licensee, the board of directors

or any officer or person in charge of the offices of the mortgage banker

refuses to permit the Commissioner to take possession of the property of the

mortgage banker pursuant to subsection 1:

      (a) The Commissioner shall notify the Attorney

General; and

      (b) The Attorney General shall immediately bring

such proceedings as may be necessary to place the Commissioner in immediate

possession of the property of the mortgage banker.

      3.  If the Commissioner takes possession of

the property of the mortgage banker, the Commissioner shall:

      (a) Make or have made an inventory of the assets

and known liabilities of the mortgage banker; and

      (b) File one copy of the inventory in the office

of the Commissioner and one copy in the office of the clerk of the district

court of the county in which the principal office of the mortgage banker is

located and shall mail one copy to each stockholder, partner, officer, director

or associate of the mortgage banker at his or her last known address.

      4.  The clerk of the court with which the

copy of the inventory is filed shall file it as any other case or proceeding

pending in the court and shall give it a docket number.

      (Added to NRS by 1999, 3756; A 2003, 3569)

      NRS 645E.640  Persons entitled to correct unsafe conditions and practices;

effect of failure to correct; receivership and liquidation of assets.

      1.  If the Commissioner takes possession of

the property of a mortgage banker pursuant to NRS

645E.630, the licensee, officers, directors, partners, associates or

stockholders of the mortgage banker may, within 60 days after the date on which

the Commissioner takes possession of the property, make good any deficit in the

assets or capital of the mortgage banker or remedy any unsafe and injurious

conditions or practices of the mortgage banker.

      2.  At the expiration of the 60-day period,

if the deficiency in assets or capital has not been made good or the unsafe and

injurious conditions or practices remedied, the Commissioner may apply to the

court to be appointed receiver and proceed to liquidate the assets of the

mortgage banker which are located in this State in the same manner as now

provided by law for liquidation of a private corporation in receivership.

      3.  No other person may be appointed

receiver by any court without first giving the Commissioner ample notice of his

or her application.

      4.  The inventory made by the Commissioner

and all claims filed by creditors are open at all reasonable times for

inspection, and any action taken by the receiver upon any of the claims is

subject to the approval of the court before which the cause is pending.

      5.  The expenses of the receiver and

compensation of counsel, as well as all expenditures required in the

liquidation proceedings, must be fixed by the Commissioner subject to the

approval of the court and, upon certification of the Commissioner, must be paid

out of the money in his or her hands as the receiver.

      (Added to NRS by 1999, 3757; A 2003, 3569)

DISCIPLINARY ACTION

      NRS 645E.670  Authorized disciplinary action; grounds for disciplinary action;

orders imposing discipline deemed public records.

      1.  For each violation committed by an

applicant, whether or not the applicant is issued a license, the Commissioner

may impose upon the applicant an administrative fine of not more than $25,000

if the applicant:

      (a) Has knowingly made or caused to be made to

the Commissioner any false representation of material fact;

      (b) Has suppressed or withheld from the

Commissioner any information which the applicant possesses and which, if

submitted by the applicant, would have rendered the applicant ineligible to be

licensed pursuant to the provisions of this chapter; or

      (c) Has violated any provision of this chapter, a

regulation adopted pursuant to this chapter or an order of the Commissioner in

completing and filing his or her application for a license or during the course

of the investigation of his or her application for a license.

      2.  For each violation committed by a

licensee, the Commissioner may impose upon the licensee an administrative fine of

not more than $25,000, may suspend, revoke or place conditions upon the

license, or may do both, if the licensee, whether or not acting as such:

      (a) Is insolvent;

      (b) Is grossly negligent or incompetent in

performing any act for which the licensee is required to be licensed pursuant

to the provisions of this chapter;

      (c) Does not conduct his or her business in

accordance with law or has violated any provision of this chapter, a regulation

adopted pursuant to this chapter or an order of the Commissioner;

      (d) Is in such financial condition that the

licensee cannot continue in business with safety to his or her customers;

      (e) Has made a material misrepresentation in

connection with any transaction governed by this chapter;

      (f) Has suppressed or withheld from a client any

material facts, data or other information relating to any transaction governed

by the provisions of this chapter which the licensee knew or, by the exercise

of reasonable diligence, should have known;

      (g) Has knowingly made or caused to be made to

the Commissioner any false representation of material fact or has suppressed or

withheld from the Commissioner any information which the licensee possesses and

which, if submitted by the licensee, would have rendered the licensee

ineligible to be licensed pursuant to the provisions of this chapter;

      (h) Has failed to account to persons interested

for all money received for a trust account;

      (i) Has refused to permit an examination by the

Commissioner of his or her books and affairs or has refused or failed, within a

reasonable time, to furnish any information or make any report that may be

required by the Commissioner pursuant to the provisions of this chapter or a

regulation adopted pursuant to this chapter;

      (j) Has been convicted of, or entered or agreed

to enter a plea of nolo contendere to, a felony in a domestic, foreign or

military court within the 7 years immediately preceding the date of the

application, or at any time if such felony involved an act of fraud, dishonesty

or a breach of trust, moral turpitude or money laundering;

      (k) Has refused or failed to pay, within a

reasonable time, any fees, assessments, costs or expenses that the licensee is

required to pay pursuant to this chapter or a regulation adopted pursuant to

this chapter;

      (l) Has failed to pay a tax as required pursuant

to the provisions of chapter 363A of NRS;

      (m) Has failed to satisfy a claim made by a

client which has been reduced to judgment;

      (n) Has failed to account for or to remit any

money of a client within a reasonable time after a request for an accounting or

remittal;

      (o) Has violated NRS 645C.557;

      (p) Has commingled the money or other property of

a client with his or her own or has converted the money or property of others

to his or her own use; or

      (q) Has engaged in any other conduct constituting

a deceitful, fraudulent or dishonest business practice.

      3.  An order that imposes discipline and

the findings of fact and conclusions of law supporting that order are public

records.

      (Added to NRS by 1999, 3757; A 2003, 2728, 3473; 2003,

20th Special Session, 223; 2009, 1522;

2011, 3634)

      NRS 645E.680  Suspension of license for failure to pay child support or comply

with certain subpoenas or warrants; reinstatement of license. [Effective until

2 years after the date of the repeal of 42 U.S.C. § 666, the federal law

requiring each state to establish procedures for withholding, suspending and

restricting the professional, occupational and recreational licenses for child

support arrearages and for noncompliance with certain processes relating to

paternity or child support proceedings.]

      1.  If the Commissioner receives a copy of

a court order issued pursuant to NRS

425.540 that provides for the suspension of all professional, occupational

and recreational licenses, certificates and permits issued to a person who is

the holder of a license as a mortgage banker, the Commissioner shall deem the

license issued to that person to be suspended at the end of the 30th day after

the date on which the court order was issued unless the Commissioner receives a

letter issued to the holder of the license by the district attorney or other

public agency pursuant to NRS 425.550

stating that the holder of the license has complied with the subpoena or

warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Commissioner shall reinstate a

license as a mortgage banker that has been suspended by a district court

pursuant to NRS 425.540 if the

Commissioner receives a letter issued by the district attorney or other public

agency pursuant to NRS 425.550 to the

person whose license was suspended stating that the person whose license was

suspended has complied with the subpoena or warrant or has satisfied the

arrearage pursuant to NRS 425.560.

      (Added to NRS by 1999, 3758; A 2003, 3570; 2005, 2810, 2817)

      NRS 645E.690  Duty of Commissioner to take disciplinary action for certain

violations.

      1.  If a person offers or provides any of

the services of a mortgage banker or mortgage agent or otherwise engages in,

carries on or holds himself or herself out as engaging in or carrying on the

business of a mortgage banker or mortgage agent and, at the time:

      (a) The person was required to have a license

pursuant to this chapter and the person did not have such a license; or

      (b) The person’s license was suspended or revoked

pursuant to this chapter,

Ê the

Commissioner shall impose upon the person an administrative fine of not more

than $50,000 for each violation and, if the person has a license, the

Commissioner may suspend or revoke it.

      2.  If a mortgage banker violates

subsection 1 of NRS 645E.350 and the mortgage banker

fails, without reasonable cause, to remedy the violation within 20 business

days after being ordered by the Commissioner to do so or within such later time

as prescribed by the Commissioner, or if the Commissioner orders a mortgage

banker to provide information, make a report or permit an examination of his or

her books or affairs pursuant to this chapter and the mortgage banker fails,

without reasonable cause, to comply with the order within 20 business days or

within such later time as prescribed by the Commissioner, the Commissioner

shall:

      (a) Impose upon the mortgage banker an

administrative fine of not more than $25,000 for each violation;

      (b) Suspend or revoke the license of the mortgage

banker; and

      (c) Conduct a hearing to determine whether the

mortgage banker is conducting business in an unsafe and injurious manner that

may result in danger to the public and whether it is necessary for the

Commissioner to take possession of the property of the mortgage banker pursuant

to NRS 645E.630.

      (Added to NRS by 2009, 2688;

A 2011,

3636)

      NRS 645E.700  Disciplinary proceedings, fines and penalties not affected by

expiration, revocation or voluntary surrender of license.  The expiration or revocation of a license of a

mortgage banker by operation of law or by order or decision of the Commissioner

or a court of competent jurisdiction, or the voluntary surrender of a license,

does not:

      1.  Prohibit the Commissioner from initiating

or continuing an investigation of, or action or disciplinary proceeding

against, the mortgage banker as authorized pursuant to the provisions of this

chapter or the regulations adopted pursuant thereto; or

      2.  Prevent the imposition or collection of

any fine or penalty authorized pursuant to the provisions of this chapter or

the regulations adopted pursuant thereto against the mortgage banker.

      (Added to NRS by 2009, 1556)

      NRS 645E.710  Act or omission of partner, officer or director deemed act or

omission of partnership, corporation or unincorporated association.  If a person is a partnership, corporation or

unincorporated association, the Commissioner may take any disciplinary action

set forth in this chapter against the person if any member of the partnership

or any officer or director of the corporation or unincorporated association has

committed any act or omission that would be cause for taking such disciplinary

action against a natural person.

      (Added to NRS by 1999, 3759)

HEARINGS; APPEALS

      NRS 645E.750  Duty of Commissioner to provide written notice of disciplinary

action or denial of license; right to administrative hearing; entry of final

order; appeals.

      1.  If the Commissioner enters an order

taking any disciplinary action against a person or denying a person’s

application for a license, the Commissioner shall cause a written notice of the

order to be served personally or sent by certified mail or telegram to the

person.

      2.  Unless a hearing has already been

conducted concerning the matter, the person, upon application, is entitled to a

hearing. If the person does not make such an application within 20 days after

the date of the initial order, the Commissioner shall enter a final order

concerning the matter.

      3.  A person may appeal a final order of

the Commissioner in accordance with the provisions of chapter 233B of NRS that apply to a contested

case.

      (Added to NRS by 1999, 3759; A 2003, 985)

MISCELLANEOUS PROVISIONS

      NRS 645E.800  Exercise of jurisdiction over party to civil action; service of

summons to confer jurisdiction.

      1.  A court of this State may exercise

jurisdiction over a party to a civil action arising under the provisions of

this chapter on any basis not inconsistent with the Constitution of the State

of Nevada or the Constitution of the United States.

      2.  Personal service of summons upon a

party outside this State is sufficient to confer upon a court of this State

jurisdiction over the party so served if the service is made by delivering a

copy of the summons, together with a copy of the complaint, to the party served

in the manner provided by statute or rule of court for service upon a person of

like kind within this State.

      3.  In all cases of such service, the

defendant has 40 days, exclusive of the day of service, within which to answer

or plead.

      4.  This section provides an additional

manner of serving process and does not invalidate any other service.

      (Added to NRS by 2009, 748)

UNLAWFUL ACTS; PENALTIES

      NRS 645E.900  Unlawful to conduct business of mortgage banker without being

licensed or exempt from licensing.  It

is unlawful for any person to offer or provide any of the services of a

mortgage banker or otherwise to engage in, carry on or hold himself or herself

out as engaging in or carrying on the business of a mortgage banker without

first obtaining a license as a mortgage banker pursuant to this chapter, unless

the person:

      1.  Is exempt from the provisions of this

chapter; and

      2.  Complies with the requirements for that

exemption.

      (Added to NRS by 1999, 3759; A 2003, 3570)

      NRS 645E.910  Unlawful for foreign corporation, association or business trust

to conduct business of mortgage banker without meeting certain requirements.  It is unlawful for any foreign corporation,

association or business trust to conduct any business as a mortgage banker

within this State, unless it:

      1.  Qualifies under chapter 80 of NRS; and

      2.  Complies with the provisions of this

chapter or, if it claims an exemption from the provisions of this chapter,

complies with the requirements for that exemption.

      (Added to NRS by 1999, 3759; A 2003, 3570)

      NRS 645E.920  Contracts for mortgage transaction voidable for certain

violations.  If a person, or any

general partner, director, officer, agent or employee of a person violates the

provisions of NRS 645E.900 or 645E.910, any contracts entered into by that person

for the mortgage transaction are voidable by the other party to the contract.

      (Added to NRS by 2009, 747;

A 2009,

2693)

      NRS 645E.930  Civil action authorized for certain violations.  In addition to any other remedy or penalty, if

a person, or any general partner, director, officer, agent or employee of a

person violates the provisions of NRS 645E.900 or 645E.910, the client may bring a civil action against

the person for:

      1.  Actual and consequential damages;

      2.  Punitive damages, which are subject to

the provisions of NRS 42.005;

      3.  Reasonable attorney’s fees and costs;

and

      4.  Any other legal or equitable relief

that the court deems appropriate.

      (Added to NRS by 2009, 747)

      NRS 645E.950  Penalties for general violations.  Except

as otherwise provided in NRS 645E.960, a person,

or any general partner, director, officer, agent or employee of a person, who

violates any provision of this chapter, a regulation adopted pursuant to this

chapter or an order of the Commissioner is guilty of a misdemeanor.

      (Added to NRS by 1999, 3759)

      NRS 645E.955  Restitution.

      1.  A person who engages in an activity for

which a license as a mortgage banker is required pursuant to this chapter,

without regard to whether such a person is licensed pursuant to this chapter,

may be required by the Commissioner to pay restitution to any person who has

suffered an economic loss as a result of a violation of the provisions of this

chapter or any regulation adopted pursuant thereto.

      2.  Notwithstanding the provision of

paragraph (m) of subsection 1 of NRS

622A.120, payment of restitution pursuant to subsection 1 shall be done in

a manner consistent with the provisions of chapter

622A of NRS.

      (Added to NRS by 2009, 747;

A 2011,

3636)

      NRS 645E.960  Penalties for violations relating to escrow or trust accounts.  A person, or any general partner, director,

officer, agent or employee of a person, who violates any provision of NRS 645E.420, 645E.430

or 645E.440 is guilty of:

      1.  A misdemeanor if the amount involved is

less than $650;

      2.  A gross misdemeanor if the amount

involved is $650 or more but less than $1,000; or

      3.  A category D felony if the amount

involved is $1,000 or more, and shall be punished as provided in NRS 193.130.

      (Added to NRS by 1999, 3759; A 2011, 179)